The Importance of Insuring Expensive Jewelry

As the holiday season comes around quickly, this is a time for those BIG surprises that make everyone smile. This is a time for many expensive jewelry purchases for loved ones. With that, it’s important to understand why and how to insure these pieces. Aside from some having sentimental value, they are also worth a lot of money. It would be just as upsetting to lose for the financial loss as the sentimental one. Coverage isn’t as pricy as you think either. It’s typically about 1-2% of the value of the item per year. There are a couple of ways to go about obtaining coverage for your most precious jewels so here is a brief breakdown of the types of jewelry coverage out there.

1. Homeowner’s insurance: Slightly different from PAF, this policy is an add-on to your homeowner’s insurance. It covers blanket coverage for a class of property. In lamens terms, it covers a wide variety of items within a large grouped category. Covers many risk factors.

2. Stand-alone policy: Agencies such as Jewelers Mutual specify jewelry insurance coverage. We offer their coverage and this type is very very comprehensive.

3. Personal Article Policy (PAF): This type of policy can be purchased separately for valuable items. This list includes but is not limited to:

   1. Jewelry

   2. Watches

   3. Antiques

   4. Art

   5. Tech

   6. China, silverware, etc.

No matter what way you decide to get coverage, it will typically always cover the following:

1. Damages from a “Covered” event

2. Replacement if stolen

Still not sure if you want to cover your item? Ask yourself these questions and if the answer is yes to either, then insuring your items is a must.

1. Can you imagine living without that piece?

2. If that piece was lost, damaged, or stolen, would you want it to be replaced?

If you now understand that you should have coverage on some particular items the first step to obtaining is to make a list of these items. Next, assign value to each. Lastly, reach out to us for a more accurate quote from our carriers. Happy holiday shopping and make sure to insure your gift as part of the purchase.